Shell Called Tight LNG Markets >7 Mths Ago, Will They Keep Hinting And Pointing To LNG Canada FID Being Likely In 2018?

Shell’s LNG Outlook webcast is Monday Feb 26 and we expect to hear another continued bullish view on LNG markets –there was no LNG supply glut in 2017, it’s a rather tight LNG market and the LNG supply/demand gap is emerging in the early 2020’s.  Shell could easily title the presentation “we told you so” because they have been clearly saying so for at least several months.  The difference is that others have seen the H2/17 data support Shell’s call, are now sharing this view, and are looking to see what new LNG supply projects can be advanced to fill this near term gap,  Its not just a supply gap that is changing.  There are big changes to contract terms, duration, pricing and destinations, and these changes increasingly drive large LNG buyers to global LNG supply leaders with the diversified LNG businesses to deliver LNG supply as required.  Shell’s bullish LNG view on Monday will bring focus to what’s the next LNG supply project.   Shell has been giving clear hints that its LNG Canada project is likely the next FID on its list.  We don’t think a LNG Canada FID comes before the summer. But unless Shell makes a big change in direction on LNG Canada, we expect the hints on Monday to continue to point to LNG Canada as the next likely FID, and likely in 2018. Continue reading “Shell Called Tight LNG Markets >7 Mths Ago, Will They Keep Hinting And Pointing To LNG Canada FID Being Likely In 2018?”